British Airways Premium vs. Standard AMEX Credit Card Analysis¶

Analysis begins by assuming a £0.01 per avios¶

Above we can see that in order for the Premium card to offer additional value and not cost, one has to spend ~>4K GBP p/m.¶

Below, I carry out the same optimisation as above and I bootstrap the avg. personal monthly GBP spend requirement for an array of AVIOS fair values.¶

i.e.¶

If someone spends £2000 p/m using his AMEX, then in order to breakeven on the premium card vs. the standard, you would have to book trips with AVIOS that utilised a minimum of 2c (£0.02) per AVIOS.

Conclusion¶

AMEX Premium vs. Standard

All other benefits being equal, it seems that the standard card will be more beneficial in isolation. This means that if no other benefits are used in a given year and only AVIOS are utilised, then AMEX Standard seems to outperform AMEX Premium given that the avg. Avios cash values are between 0.8c (£0.008) - 1.9c (£0.019)

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